Are traders waiting by the door in hogs?

Another week and another record net long position in lean hogs, according to the latest COT report.

It's well known by traders that September is generally the time of year when we see weakness in hog prices.

This year we are looking at increases in production which will be aided by cooler weather as well as corn prices that are much lower than the same time last year.

With that in mind it is interesting to see a continued increase in the net long position of managed money.

It makes me think that there are a number of traders siting ready and waiting to pounce on the first sign of weakness which could also lead to an additional spike lower on the back of some big money covering.